Arts Help States Reap Rural Economic Gains
From Southern Appalachia to the Mississippi Delta and from California’s coast to Maryland’s eastern shore, states are turning to arts-based economic development strategies to revive rural economies stung by geographic isolation, infrastructure deficiencies and the flight of skilled workers to big cities, according to a new issue brief from the National Governors Association Center for Best Practices (NGA Center).
Incorporating the arts into states’ existing rural economic development policy helps not only to diversify rural economies but to provide these previously struggling communities with a competitive advantage in the 21st century’s global marketplace as well. The brief, Strengthening Rural Economies through the Arts, documents how states utilize a variety of arts-focused policies to create jobs and improve quality of life.
By drawing upon the distinctive cultural assets that have come to characterize many of the nation’s rural communities, many states are beginning to retain skilled workers, generate revenue and attract new investment by cultivating clusters of economic activity in the creative industries. Many states have generated jobs and increased tax revenue thanks to a dedicated investment in the arts.
In California, for instance, arts and cultural organizations in rural communities alone generate $6.8 million in tax revenue for the state and employ 1,400 people. In Montana, the arts employ more people than each of the following industries: mining, wood products manufacturing and building materials retail market. Meanwhile in Vermont, the creative industry includes thousands of businesses and nonprofit organizations and employs about 4.5 percent of the state’s workforce.
“In downtown Idaho Falls an arts center, museums and a repertory theater have filled the void created when retailers left for large malls. With their success, we have seen other retailers, developers and professionals return to a new, vibrant and culturally rich downtown,” said Idaho Gov. Dirk Kempthorne. “Our experience in Idaho has been replicated in states across the country. I cannot overstate the importance of the arts in building strong, sustainable economies.”
For rural areas to reap results–higher tax revenues, more jobs, new residents, reduced property vacancy rates and increased business investment–the brief suggests states should identify the diverse assets that the arts have to offer and strengthen the creative sector.
“This report illustrates the value-added return states reap from their creative economies–distinctive brand identity, sustainable markets and a first-rate quality of life,” said Arizona Gov. Janet Napolitano, the NGA vice chair and NGA Center chair. “State arts councils and departments of transportation and tourism can be valuable partners in developing cultural events and programs. The Arizona Commission on the Arts recently launched a grants program, which encourages collaborative projects among organizations dealing with rural economic development, tourism, ethnic arts and tribal communities.”
States currently are providing a wide range of policy options to support the arts in rural communities, including integrating the arts into economic development and tourism planning and marketing, providing capital and entrepreneurship training, improving physical infrastructure and supporting artists’ collaboratives, and using community colleges to support training and business assistance efforts.
In North Carolina, all community college budgets include funding for small business assistance centers that provide courses and one-on-one technical assistance to help entrepreneurs assess the market, develop a business plan, and obtain funding.
Several state agencies in Minnesota, including the Office of Tourism and Department of Transportation, combined forces to promote the state’s scenic byways and their natural and cultural attractions.
The Cultural Economy Initiative in Louisiana builds on the rich culinary and musical traditions in The Bayou State.
Both Alaska and Kentucky have programs in place to provide marketing education and training to rural artists to help expand their sales base, generate private partnerships and assess new markets.
And in Iowa, the state’s cultural district program offers tax credits for the creation of artist living and working space and entertainment venues through rehabilitation of historic structures.
Strengthening Rural Economies through the Arts is the fourth in a series of issue briefs, which document how the arts can help states achieve economic development goals. The series is produced by the NGA Center, with cooperative agreement funding from the National Endowment for the Arts (NEA) and research assistance from the National Assembly of State Arts Agencies (NASAA).
“This report shows the economic success that rural states and communities enjoy when federal, state, and local governments work together to promote the arts. It also illustrates how other communities can follow the best practices to duplicate these successes locally in their communities,” said Dana Gioia, NEA Chairman.
The brief includes extensive program and policy profiles from around the nation. “This research illustrates how states are drawing in innovative ways on the resources of their creative industries, arts organizations and artists to address pressing economic challenges. States are recognizing that strong economic development policy includes a cultural dimension, and that rural areas offer assets valued by residents, businesses and tourists in today’s global marketplace,” said Jonathan Katz, CEO of NASAA.
“Governors should position their states to use the arts effectively as an economic development tool by cultivating clusters of economic activity in the creative industry,” the brief concludes. “If states intend to build their economies on the jobs of the future and improve rural communities and economies, they must cultivate a creative workforce and attract arts-based businesses.”
